Former Egyptian Ambassador to Israel Muhammad Basyuni claimed Thursday that a deal for kidnapped soldier Gilad Shalit would be announced "within hours".

He gave no source of information for his claim, and the Prime Minister's Office responded immediately by stating that "no breakthrough" had been made in continuing talks for Shalit's release.

"In the next few hours an official agreement to swap Israeli and Palestinian prisoners will be announced, releasing Israeli soldier Gilad Shalit, who is being held in Gaza pending the release of a thousand Palestinian prisoners from Israeli jails," Basyuni told the Egyptian daily Al-Masryoon, identified with the Muslim Brotherhood.